Tag: severance

Walking the line between termination and resignation

by Hannah Roskey For Canadian employers, navigating the distinction between resignation and termination can be tricky. If an employee resigns, there is no entitlement to severance. If an employee is terminated without cause, the employer is on the hook for termination pay (and possibly severance pay in Ontario and the federal jurisdiction). The recent Alberta […]

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When working notice just doesn’t work

by Jacqueline Gant For employers shutting down operations, providing working notice is often the best way to reduce severance amounts owed. Except when it’s not. In McLeod v. 1274458 Ontario Inc., an Ontario court confirmed that working notice is appropriate only for employees capable of working during the notice period. Facts The employer sold furniture […]

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No mention of severance pay or benefit continuation … No worries! Termination provision enforceable nonetheless!

by Rachel Younan Recent case law has overwhelmingly rejected termination clauses that purport to limit an employee’s entitlements upon termination to the minimum notice required by applicable employment standards legislation. In Ontario, provisions that have failed to reference severance pay and/or benefit continuation have been found to be invalid, resulting in common law notice that […]

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New Tennessee unemployment law makes changes helpful to employers

By Kara E. Shea Tennessee’s Unemployment Insurance Accountability Act, which takes effect September 1, amends the state’s unemployment statute in ways helpful to employers. For instance, the new law defines what constitutes “making a reasonable effort to secure work” for the purposes of unemployment insurance eligibility. It specifies that “making a reasonable effort to secure […]

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Happy Headhunting for Employers

By Gulu Punia Successful headhunting can add significant value. But employers must be careful that they don’t become the hunted. As with any hunt, there are risks that may not be obvious. In the employment context, a Canadian employer may be on the hook for extended severance or risk an action from the previous employer […]

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Proceed with Caution When Rehiring Laid-Off Employees

by Kara Shea One hopeful sign that our economy is perhaps inching back in the right direction is the number of calls I’ve received in recent weeks from clients inquiring about hiring back employees let go during a reduction in force (RIF). Some employers have told me they’re contemplating bringing back certain positions, or even […]

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Reducing the Risk of Wrongful Discharge Claims During Layoffs

by Kara Shea In a previous article, I discussed the risks of some of the methods employers use to forestall layoffs (such as adjusting hours and compensation). This week, I’m going to assume the worst has happened and talk you through a layoff scenario, with the goal of reducing the risk of wrongful discharge claims […]

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